Shoppers opt for cash over credit

NEW YORK — Shoppers are doing all they can to keep their credit cards in their wallets this holiday season.

They're paying with cash or debit cards, using layaway plans and even exchanging frequent-flier miles for cash to buy gifts. When they pull a credit card, it's at a store that doesn't charge interest for up to six months.

A desire to stick to a budget and to avoid interest rates that have risen sharply have helped drive a marked shift away from credit cards. Banks have also reduced the amount of credit they're making available, even to low-risk clients.

"Consumers are looking for discipline in their spending levels that they can achieve from using cash," said Bryan Eshelman, managing director in the retail practice of consultant AlixPartners, whose recent survey of shoppers revealed their top concern was eliminating personal debt.